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Russian Oil Firms' Shares Suffer
Despite Tightening Fuel Market

By

Jeanne Whalen Staff Reporter of The Wall Street Journal

Updated June 28, 2000 12:01 a.m. ET

MOSCOW -- Russian oil company OAO Sibneft announced a ninefold increase in dollar profit for 1999, thanks to a weak ruble and high oil prices. The news underscored that pumping oil in Russia has never been so lucrative. But it also raised a curious question: Why are the share prices of Russian oil companies still so low?

A weak Nasdaq and overall aversion to emerging economies are largely to blame. But investor concern that management and majority shareholders aren't re-investing profits or paying them out to minority...